Bitcoin: The Gold of the Internet
Bitcoin is a decentralized digital currency that is created and held electronically [1]-[5]. It is like a combination of gold, dollar, and visa if they were to have a baby. Unlike traditional payment systems, Bitcoin has its own metric for value called a bitcoin [1]. It is classified as property versus currency according to the IRS [2]. The value of a bitcoin is determined mainly from its use for making payments in the Bitcoin system, and from the purpose of accruing gains from bitcoins’ possible appreciation [1].
Only a certain number of Bitcoins will ever be created [1]-[5]. Bitcoin can be thought of as the gold of the internet. The value of it varies based upon the supply and demand. It can be exchanged …show more content…
Bitcoin mining is the process of where users provide computing power to process Bitcoin transactions. As time goes on the Bitcoin algorithm beings to decrease the number of bitcoins generated [1]-[5]. Each exchange that is made the value of bitcoins changes. It can be exchanged for other currencies such as dollars or euros [1]-[5]. Merchants are a key component on the value of a bitcoin because as more merchants begin to accept it as a currency the more the value increases …show more content…
It is used to make it almost impossible for anyone to corrupt the block chain used for the bitcoin. A block chain is an open transaction ledger, records all transactions on the system. Each time a new block is mined the transaction data held inside the block will is added to the block chain and confirmed. The information that is stored into the chain is encrypted so that anonymity is created [1], [4], [5].
Conclusion
The use of virtual currencies and Bitcoin are growing. As the economy and commerce is becoming more globalized, the more popular currencies not tied to a sovereign are becoming more appealing [1], [4]. Bitcoin is a system that allows electronic transfers without relying on trust.
The main benefit of using bitcoin over a credit or debit card is the privacy and convince [1]-[5]. Bitcoins are transferred peer-to-peer without an intermediary [1]-[5]. No personal information is recorded in the Bitcoin Ledger or personal information is available by cross-referencing the account numbers [1], [3], [5]. Bitcoins is like transferring cash, but it can performed over the internet to anyone anyplace almost anonymously [1]-[5]. It also provides a financially stable currency [1],
Bitcoin is a decentralized digital currency that is created and held electronically [1]-[5]. It is like a combination of gold, dollar, and visa if they were to have a baby. Unlike traditional payment systems, Bitcoin has its own metric for value called a bitcoin [1]. It is classified as property versus currency according to the IRS [2]. The value of a bitcoin is determined mainly from its use for making payments in the Bitcoin system, and from the purpose of accruing gains from bitcoins’ possible appreciation [1].
Only a certain number of Bitcoins will ever be created [1]-[5]. Bitcoin can be thought of as the gold of the internet. The value of it varies based upon the supply and demand. It can be exchanged …show more content…
Bitcoin mining is the process of where users provide computing power to process Bitcoin transactions. As time goes on the Bitcoin algorithm beings to decrease the number of bitcoins generated [1]-[5]. Each exchange that is made the value of bitcoins changes. It can be exchanged for other currencies such as dollars or euros [1]-[5]. Merchants are a key component on the value of a bitcoin because as more merchants begin to accept it as a currency the more the value increases …show more content…
It is used to make it almost impossible for anyone to corrupt the block chain used for the bitcoin. A block chain is an open transaction ledger, records all transactions on the system. Each time a new block is mined the transaction data held inside the block will is added to the block chain and confirmed. The information that is stored into the chain is encrypted so that anonymity is created [1], [4], [5].
Conclusion
The use of virtual currencies and Bitcoin are growing. As the economy and commerce is becoming more globalized, the more popular currencies not tied to a sovereign are becoming more appealing [1], [4]. Bitcoin is a system that allows electronic transfers without relying on trust.
The main benefit of using bitcoin over a credit or debit card is the privacy and convince [1]-[5]. Bitcoins are transferred peer-to-peer without an intermediary [1]-[5]. No personal information is recorded in the Bitcoin Ledger or personal information is available by cross-referencing the account numbers [1], [3], [5]. Bitcoins is like transferring cash, but it can performed over the internet to anyone anyplace almost anonymously [1]-[5]. It also provides a financially stable currency [1],